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Here's one idea: Cap the amount that all student loans can collect at something like 15% of taxable income, for max 20 years after signing. After that they are

by iguy 6y ago

Here's one idea: Cap the amount that all student loans can collect at something like 15% of taxable income, for max 20 years after signing. After that they are written off. But let the lenders see everything -- school, major, test scores. This ensures loans can never become a crushing burden. But more importantly, it incentivises the banks to provide very useful information to the potential students. Unlike colleges who, since they get paid up front, are strongly incentivised to let marginal students study expensive things.

dragonwriter 6y ago
> Here's one idea: Cap the amount that all student loans can collect at something like 15% of taxable income, for max 20 years after signing. After that they are written off. Make it the 10% of discretionary (not gross), and up the limit to 25 years of any of the loans covered graduate or professional study, and you'd have an existing option for current federal student loans. Make this the only option for federal loans, remove private loans from the protection against bankruptcy discharge, and you the job is done. > But let the lenders see everything -- school, major, test scores. Private lenders can, AFAIK, already put terms like this in contracts if they want.